Sunday, December 23, 2012

Super Bowls equals an Economic Boom? Or is it a Bust?

Many people believe in the notion of having a Super Bowl in their city will be an economic boom. Is this actually the case? In this article, "Super Bowl L", it addresses some of the myths surrounding the revenue generation of sporting events such as the Super Bowl.  While many will promote and sell the projected revenue generated it is a rarity that people are advised of the cost. For example, here is a key excerpt from the article referencing this:

"To claim an economic windfall based on visitor numbers without factoring in those who avoid the area or are pushed out "is like going to the hen-house, counting all the foxes, and saying 'Look at the economic impact of all these foxes here eating!' Porter says. 'You're not counting all the hens who are gone.' "

City political leaders love to cite how much taxable revenue will be brought into the city thanks to these events. What about the costs? For example, what are the sunk costs for hosting a Super Bowl or Olympiad? Are these costs ever recouped?  How does this impact the economy over the long haul after the events are finished?  Much more research must be done to address the answers of these questions.

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